1955

When presumed-to-be-wealthy mobster, Benjamin “Bugsy” Siegel, was slain at age 41, the estate he left was worth $35,609 (about $314,550 today).

Before his murder, Siegel co-financed and oversaw completion of the Flamingo hotel-casino in Las Vegas but ran up its development costs by several million and began bouncing checks.

In his earlier days, he was, among others, a bootlegger, hit man, thief and a founder/leader of Murder, Inc., the U.S. Mafia’s enforcement team.

In 1971, various people began complaining to the local police department they’d gotten fleeced at an informal casino setup in California’s San Fernando Valley (yes, the location of, like, “valley girl” fame, a culture that developed a decade later).

The Dirty Details

Consequently, the Los Angeles Police Department (LAPD), Federal Bureau of Investigation and Department of Justice’s Organized Crime Strike Force investigated the grievances. They discovered an illegal gambling ring, one that floated, or moved to avoid detection by law enforcement. In this case, it had been held at a different, rented home each time and the venture had been run for four months.

Peter J. Milano, Los Angeles Mobster

The men behind it employed prostitutes to lure their johns into playing various dice and card games of chance, including blackjack and craps. These were/are illegal in California. Then they cheated the players out of as much money as possible during the gambling by secretly using loaded dice, marked cards and a crooked wheel, all of which they’d acquired in Las Vegas.

They netted as much as $250,000 a month (about $1.5 million today)!

In December 1972, the LAPD raided the operation, and a grand jury ruling followed in November 1973. It indicted seven men on these charges: 1) conspiring to violate gambling laws, 2) traveling between states to promote an illegal gambling business and 3) conducting an unlawful enterprise.

The alleged co-conspirators were:

• Peter John Milano, 47, a Northridge resident, a made* member of La Cosa Nostra’s Los Angeles Nick Licata Family and a bail bondsman. As the suspected kingpin of the gambling scheme, he’d provided police protection and had offered to put up bond if any of them had gotten arrested.

• Martin C. Calaway, 47, a Beverly Hills attorney who allegedly had bankrolled the scheme with $25,000, for which he was to receive 20 percent of the profits.

• Luigi Gelfuso, 48, operator of a Fresno trash collection company, who supposedly had provided protection and debt collections.

• John Joseph Vaccaro Jr., 33, an unemployed Las Vegas construction worker believed to have run the games.

• Tony Endreola, 49, and Santo Albert Manfre, 39, were said to have overseen the games to ensure Milano had gotten his fair share of the profits. What the involvement of Harry P. Coloduros, 35, had been isn’t known.

Verdict Insurance

Six days before the trial was to start, a masked person executed John L. Dubcek, 31, and his wife Francis Ann, 27 in Las Vegas at close range just before midnight as the two entered the dark hallway leading to their apartment. He first shot John in the back then hit Francis Ann in the face as she turned around.

The two had worked at the Westward Ho casino. He’d been a shift manager, which was ironic as he was an expert slot machine cheater and had gotten into trouble for illegal gambling previously. He also had been charged in 1972 with running a crooked gambling operation in Van Nuys with Vaccaro, but the case had been dropped.

John Dubcek had been scheduled to testify as a prosecution witness in the trial of the septet just as he’d done before the grand jury in the same matter. Although his and his wife’s murders never were solved, the FBI and other agencies believed that Milano, Calaway, Gelfuso and Vacarro had had him killed to silence him. In fact, the prosecutor averred he had proof the four had plotted the hit on the courthouse steps the day they’d been arraigned. Despite knowing that two contracts had been out on his life, Dubcek had refused police protection repeatedly.

“It was definitely a rubout job” by a professional hitman, a police investigator said (Press-Telegram, March 21, 1974).

Due to the murders, the judge postponed the trial for four and a half months.

Judgment Day

When it finally took place, in mid-August, one of the men involved, Coloduros, testified for the government and implicated the others in the illegal gambling ring, yet Milano and Calaway professed their innocence.

The six-man, six-woman jury, after deliberating for three days, returned a guilty verdict for the three major players — Milano, Calaway and Gelfuso. A month later, U.S. District Court Judge Jesse. W. Curtis sentenced them each to four-year terms in federal prison.

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* “Made” denotes one’s status as a fully initiated member of the Mafia, one that requires, for one, carrying out a contract killing on the organization’s behalf.

Sources

1947-1952

Despite New York mobsters trying to scare her off, an ambitious woman — Elaine Townsend (née Margaret Helgeson) — held her own as a gambling operator in the late 1940s. Bright, young and gorgeous, she parlayed her chutzpah, commerce degree and drive into making gobs of money in Cuba.

Big Screen Worthy

Her exploits in Havana among gangsters, politicians, movie stars and secret agents were so compelling that Lucille Ball and Desi Arnaz planned to make a movie about them with Ball in the lead role but never did. However, a different film about Townsend — Razzle Dazzle: The Elaine Townsend Story — is slated for release on Aug. 1, 2018.

Entrepreneurial Endeavor

The Wyoming-born go-getter traveled to the Caribbean island early in 1947, at age 27.

“I’d heard Cuba was the spot for free enterprise — and I was as determined as ever to make a lot of money,” said Townsend, the daughter of a cattle rancher who’d grown up poor (The American Weekly, Sept. 5, 1948).

Once there, she heard the gambling concession at the Gran Casino Nacional, Cuba’s only legalized gaming spot at the time, was being sold for the upcoming season. Soon after, the tall blonde learned it only had been awarded to the New York Mafia in previous years. She consulted some attorneys who told her women didn’t run games in their country.

None of that deterred her, however, and she bid on the enterprise.

After negotiating for months with officials, Townsend bought the dice and chemin de fer (a variant of baccarat) operations for $30,000 ($329,000 today). She opened them in July, four months before the New York gamblers typically did.

The Confrontation

She soon found herself face to face with three of those very men from The Big Apple in the Gran Casino.

“We heard you grabbed off the dice and chemmy gimmicks here,” one of them said (The American Weekly, Sept. 5, 1948). “We came down, hoping to grab them off ourselves, and this Cuban guy says, ‘Miss Townsend got them. They’re all hers. They’re not for sale.’ We thought maybe it was a gag. It isn’t true, is it?”

When she confirmed that it was, another of the trio told her the players would “clean her out in a week.”

“What you want to do it for, honey?” the first man asked. “It’s not your racket. You got … well, you got class. You ought to be home or someplace.”

“I don’t want to go home. I want to make a lot of money,” Townsend said.

“Look, we’ll give you $10,000 more than you laid out if you’ll sell to us,” the third man said.

“No.”

“Twenty thousand?”

“I’m sorry, gentlemen, but I’ve gone through a lot of anxiety over this thing. I’ve got to be repaid for that. And so far it’s been fun. I like it. I’m going to stick with it.”

The La Cosa Nostra representatives left her alone after that.

Never having worked in gambling before, Townsend hired New Yorker Connie Immerman, not a mobster, to run the games under her watch, as he’d run them years earlier. Most recently, Immerman, with two of his brothers, had co-owned and run Connie’s Inn, a Harlem night club from 1923 to 1934, when the Depression caused them to close it.

In Havana, Townsend went on to own an interest in the Jockey Club casino and operate the games at the Montmartre after Fulgencio Batista, who usurped the Cuban presidency by coup in 1952, legalized gambling in hotels, clubs and cabarets in 1954.

Amassing Cash

Before entering the gambling industry, Townsend had toiled to earn, save and invest her money. After working her way through and graduating from the University of Denver in Colorado at age 19, she worked, often simultaneously, an assortment of jobs — teaching, selling real estate and modeling.

In 1940, at 20 years old, she visited friends in Honolulu and, after seeing the potential to make money there, she stayed. First, she ran a photo studio. Then, with the start of World War II, she opened a chain of hot dog stands, to which she eventually added a costume jewelry counter. She also bought the pool table concession in an arcade. With her income, she played the stock market … successfully.

Subsequently, she investigated business opportunities in Mexico but, instead, wound up in Cuba, just seven years after her first entrepreneurial effort.

Sources